Farmers from the Upper Hunter and beyond who are fighting to stop a proposed gas pipeline from running through their properties will travel to Newcastle on Thursday to confront Santos representatives who will be promoting the project to the region's business community.
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Santos' regional manager, onshore Andrew Snars will give an overview of the state of gas supply in NSW as well as an update on the Narrabri Gas and Hunter Gas Pipeline projects at this month's Business Hunter lunch.
If built, the 413-kilometre pipeline would carve through hundreds of kilometres of agricultural and conservation land between the Narrabri gas project and the Port of Newcastle.
It is estimated that about 100 potentially affected landholders live between Muswellbrook and Maitland.
The Hunter Gas Landholder Rights Alliance has more than 120 members who live on 100 properties between Hebden near Muswellbrook and Millers Forest.
All of the alliance members, who represent almost 60 per cent of the properties in the area, have indicated they do not want the pipeline on their land.
NSW Farmers, the NSW Nationals and trade unions have also opposed the project.
Quirindi cattle and cropping producer Peter Wills said he would be travelling to Newcastle to ask Santos to explain why it was persisting with a project plagued by technical problems and opposed by most landholders along the route.
"There's been a lot of glossy bullshit that needs to be shot down," Mr Wills said.
"This project is not a fait accompli, there are a lot of obstacles in the way - the Gomeroi Traditional Owners, the farmers and the gas industry itself.
"We have told them (Santos) point-blank that there are a lot of risks associated with these developments, and as farmers, we don't want to bear that risk on our soil and water resources."
While farmers argue that restrictions placed on landholders who agree to host the pipeline will make it near impossible to continue farming operations, Santos has countered that normal agricultural production, including cropping, will be able to occur on the easement after the pipeline is built.
Principal adviser at the Australia Institute, Mark Ogge, accused Santos of using the Hunter Gas Pipeline as part of a 'shell game' with the domestic gas market.
"The Narrabri gas project will add net-zero gas for NSW, because even if the molecules go to NSW customers, Santos will simply export more gas from the Cooper Basin that would otherwise have supplied NSW," he said.
"The one impact Narrabri will have is to increase NSW gas prices because it will result in substitution of cheap Cooper Basin gas for expensive Narrabri gas.
"Santos are the great wreckers of the domestic gas market. Anyone who believes they will give them cheaper gas is naive at best"
The Business NSW Business Conditions Survey indicates 18 per cent of all businesses and 64 per cent of the accommodation and food sectors rely on gas for their operations.
The cost and availability of gas are crucial issues for many businesses, particularly those that use gas as feedstock or cannot easily electrify industrial processes, such as heating and refining due to cost or technological barriers.
Business Hunter chief executive Bob Hawes said many business and industrial users were working to reduce their reliance on gas, but cannot yet fully transition to lower-carbon energy sources.
"Large-scale renewable energy projects are not progressing as quickly as expected, so energy supply is not available at the scale, price and reliability that industry needs," he said.
"The event will also preview an upcoming Business NSW advocacy paper which outlines the importance of gas to the state's energy security, manufacturing strength and sovereign capability, and promotes its continued role in the net zero transition."
Matthew Kelly
In recent years he has reported on subjects including environment, energy, water security, manufacturing and higher education.
He has previously covered issues including the health and environmental impacts of uncovered coal wagons in the Hunter Valley, the pollution of legacy of former industrial sites and freedom of information issues.
